After six-hours of heated debate over the building of a controversial retail center in Commerce, the City Council approved two resolutions early Wednesday that will allow the project to move forward.

The proposed project runs along Washington Boulevard, from the 710 Freeway to Atlantic Boulevard, and from Washington Boulevard to Sheila Street. It will include four smaller individual buildings for retail stores and restaurants, and a Walmart box store as the anchor tenant.

While the council meeting started at 6:30 p.m. Tuesday, it wasn’t until after midnight that the council ultimately voted 4-1 to adopt and certify the Final Environmental Impact Report for the proposed Commerce Retail Center. Councilwoman Oralia Rebollo was the sole dissenting vote.

On a 3-2 vote, the council also approved development of the 142,997 square foot Commerce Retail Center, this time with Mayor Pro-Tem Tina Baca joining Rebollo in voting no.

City Council Chambers were jammed packed Tuesday with supporters and detractors of the project, leading to hours of public testimony after the presentations on the project by city staff, the developer, Gatwick Group LLC, and representatives of Walmart.

As the meeting went on, it was clear that the hot button issue was not necessarily the retail center itself, but the inclusion of Walmart as the development’s main tenant. Many of those who spoke on both sides of the issue were not residents of Commerce, but either employees of Walmarts in other cities or activists who are fundamentally opposed to Walmart, wherever they may be.

Supporters see the potential for increased revenue for the city and more jobs, while detractors attempted to paint the big box retailer as unscrupulous and bad to its workers.

Explaining his support for the project, Commerce Mayor Ivan Altamirano told EGP he sees the new center as a win-win situation for the city.

“The land is contaminated and no one wanted to clean it up because it was too expensive,” he explained. “Only one entity said ‘yes, we will clean it up,’ and that was Walmart,” Altamirano said.

“It would have been irresponsible of me to allow that land to stay contaminated. It took confidence to possibly stand alone in my decision, and the courage to make the tough decision that I made,” he told EGP.

Resident Erika Bojorquez disagrees that the development is good for the city. She told the council bringing Walmart, with its “bad reputation,” works against the city’s “Model City” motto.

“People talk about the donations Walmart makes, but why don’t they donate living wages to employees,” she said, drawing applause from the audience.

Commerce City Council Chambers was jammed packed with people wanting to speak on plans that would bring Walmart to Commerce. (EGP photo by Jacqueline Garcia)

Small business owner Michael Belgan said his 52-year-old company will go out of business if Walmart is built, costing his 12 employees their jobs.

“My little company’s employees make about $40,000 a year, and that’s way more than what Walmart will pay,” he told the council.
Several other speakers said Walmart is a bad neighbor because they pay low wages and take advantage of people in need of jobs.

Everything sounds good, drawings and video are great, but how many people from Commerce will actually be hired? Commerce resident Richard Hernandez wanted to know.

“You [have to] negotiate with these people. We are depending on you” to get them to hire locally, he told council members.

Walmart opening in Commerce will revitalize the city, the company’s Director of Public Affairs and Government Relations Javier Angulo said Tuesday. He cited a substantial reduction in the number of daily diesel truck trips, cleaning of the contaminated industrial site and an additional $600,000-$800,000 in annual revenue to the city’s general fund as benefits from Walmart opening in the industrial city.

“We want to be the anchor tenant…we are in it for the long term,” he said.

Sal Lopez works at the Downey Walmart and said the company has been great to him. “I have been with Walmart for over 10 years,” he said. “Walmart has a training program, bonuses according to performance” and other benefits, he said responding to criticism of the retailer’s employment practices.

You talk about the positive, but what about the negative, demanded Mayor Pro Tem Baca del Rio. “Look at what happened in Pico Rivera,” she said, referring to the closing of the Pico Rivera Walmart.

The store in Pico Rivera was old and it had plumbing problems, said Angulo. “Now we have higher participation in the store and our associates are very happy,” he told the council.

Jessica Piedra was one of the workers displaced when the Pico Rivera store closed down with little notice, and says the company supported her during the transition. “When the Pico Rivera store closed they sent me to the Baldwin Park location and when the store reopened I was interviewed to be brought back to Pico Rivera,” she said.

Opponents claim the real reason the store was closed was because workers had started to unionize.

“You don’t hire unions. You outsource from other states. How do we ensure the construction of this project stays local?” he asked.

Gatwick is very committed to working with the city as much as we can to hire locally, responded the developer’s attorney, Morgan Wazlaw with Rutan and Tucker.

Council approval of the project, despite their own criticism of Walmart’s business practices and “overwhelming” community opposition, is embarrassing, Mark Lopez, co-director of Commerce-based East Yard Communities for Environmental Justice told EGP, adding “The fight is not over.”

One of the speakers before the vote, however, pointed to a time years ago when there was opposition to another big commercial project in the city, the Commerce Casino.

People at the time thought it would drag down the city, draw prostitutes to the city, but that didn’t happen, pointed out the speaker.

Today the Commerce Casino is one of the largest tax generators for the city, she pointed out.

As one of the State’s most impacted environmental justice areas, Commerce has suffered the brunt of cumulative impacts of heavy manufacturing in conjunction with decades of pollution from truck and train traffic.

These impacts have a chilling public health legacy measured in high incidences of respiratory illnesses, cardiovascular disease, cancer and countless other chronic conditions. Every resident knows someone who has suffered from these conditions.

The Bandini neighborhood is now in the unlikely position of receiving some small measure of relief thanks to the long overdue cleanup of contamination from the Exide lead battery recycling plant.

Ironically, this relief comes seemingly just in time to coincide with a proposed Walmart center which will bring additional truck traffic, pollution and traffic safety issues on a busy arterial street and the likely loss of nearby homes due to the I-710 Expansion Project.

The City cannot ignore or override CEQA consideration to address these significant impacts.

In fact, as currently proposed, the City is on the hook to pick up most of the costs to install an unproven traffic control system to mitigate some of these safety issues. That Walmart would pay only 3% of this cost equates to corporate welfare for a company whose business practices force a significant portion of their workforce to seek public assistance in order to make ends meet. In effect, the proposed Commerce Walmart will be ripping off taxpayers twice.

In addition, the property is contaminated with volatile organic compounds. After the Exide debacle, the public deserves to know how the community’s health will be protected.

Furthermore, Walmart has proven to be an untrustworthy business partner to cities across the United States. Washington D.C. spent $90 million to make a similar project viable only to have Walmart pull the plug and stick taxpayers with the bill. “I’m blood mad,” said D.C. Mayor Muriel E. Bowser.

Closer to home the Walmart store in Pico Rivera closed abruptly for eight months last year due to alleged plumbing issues without notice. With this unprecedented action, Walmart put approximately 500 people out of work and caused the loss of hundreds of thousands of dollars in revenue to the City of Pico Rivera. According to a published news report in the LA Times, this action caught the city administrator and mayor of Pico Rivera by complete surprise.

Add to that the recent closures of stores across the country including the one in our neighboring City of Bell Gardens, it paints a clear picture of Walmart’s “here today gone tomorrow” business practices that leave in its wake blighted urban sprawl, lost revenue and in Commerce’s case the distinct possibility of Bandini residents losing their homes.

Finally, it is of note that large groups of people have been bused in from outside of the community to the last two Planning Commission Meetings wearing yellow shirts touting “More Jobs for Commerce.” While it is uncertain who was footing the bill for this effort two things are clear. The first is that someone stands to gain financially. The second is that this deliberate effort to create the perception of support for the project and mislead residents is an insult to this community.

Commerce was founded as “The Model City.” I believe that standard still matters in what we do to improve our community. Based on the way this corporate giant destroys small businesses, mistreats their workers and exploits cities like Bell Gardens, Pico Rivera and now Commerce for profit at any cost, Walmart does not meet that standard.

Jason Gardea-Stinnett is a Commerce resident and former Commerce Public Information Officer.

Walmart is always looking for opportunities to better serve our customers in the Southern California region. We give a great deal of thought in selecting our locations and there are many factors that weigh in our decisions. The City of Commerce is an attractive location with its business friendly environment and close proximity to many of the local manufacturers and distributors we work with daily. In fact, last year alone Walmart purchased more than $219 million worth of goods and services from Commerce suppliers. Perhaps most importantly though is that a Walmart in Commerce would provide the community with convenient access to fresh, affordable groceries, pharmacy services, and a broad assortment of general merchandise.

A Walmart in Commerce will also bring local job growth and economic revitalization. The new store will create approximately 300 new jobs that provide competitive pay, benefits including paid time off and much more, as well as opportunities for advancement. A Walmart in Commerce would keep sales tax revenue in the city to help support important community services like the city’s after-school park program, libraries, and public safety services.

Currently, the best opportunity for a Walmart in Commerce is at the proposed retail center at the corner of Washington and Atlantic Boulevards. This particular area is well positioned for revitalization and that is why the proposed Commerce Retail Center project is now moving its way through the public approval process. It won’t come easy as the site is mostly industrial use now and will require environmental clean-up but it is an area in need of a plan and there are interested parties ready to invest in a transformation.

A great example of a former industrial area revitalization that we’ve been part of is South Gate. Our South Gate Walmart has been a major anchor in the thriving Azalea Shopping Center for about two years. According to a recent South Gate city staff memo the Azalea Shopping Center generated approximately $2.6 million in sales tax revenue for the 2014-15 fiscal year, its first year in existence. Previously, there had been virtually no sales tax reported for

that location. The best part is that South Gate’s nearby Tweedy Mile business district also grew during this time increasing their sales tax revenue significantly. This is exactly the kind of direct and indirect economic development we know is possible in Commerce.

We join with local residents who would like to see the corner of Washington and Atlantic Boulevards transformed into a robust commercial center that contributes to the economic vitality of the city.

That’s why we support the plan for the Commerce Retail Center and are working to raise awareness of the possibilities for this location, including a future Walmart Supercenter as the anchor tenant.
So, yes, Walmart is interested in the City of Commerce and we believe this is the right project at the right time in the right place. We are excited about a future serving this great city, its residents and visitors.

A proposal to build a retail complex that could include a big box type retail store on Washington Boulevard near the 710 Long Beach Freeway in the City of Commerce is drawing heat from a local environmental group, at the same time others in the city say the development will bring needed jobs and added revenue to the city.

Plans for the for the proposed Commerce Retail Center Project on Washington, running from the 710 Freeway to Atlantic Boulevard, and from Washington Boulevard to Sheila Street, include a 122,450-square-foot “Major Anchor” retail store, with adjoining restaurants and other retail spaces.

It would be built on land the city is selling as required under the state’s dissolution of redevelopment agencies across the state. The city is in escrow with Gatwick Group, LLC, however, the sale is contingent on approval of the retail project.

The city’s planning commission reviewed plans for the proposed development, but last week split 2-2 on whether or not to recommend approval to the city council. One of the five commissioners recused himself due to a potential conflict of interest.

Speculation among the project’s opponents is that the project applicant, Venture Retail Group, plans to lease the site to Walmart, although no specific retailer is named in the project, only a description that describes a retail format found at many of Walmart’s larger stores.

Planning Commissioner Mike Alvarado told EGP he strongly supports the project, saying it would again make Commerce a “Model City,” a reference to the city’s motto.

“The city, as it is now, looks horrible, it is decaying,” Alvarado told EGP, explaining that revenue generated from the development would help pay for repairs to streets, sidewalks and other infrastructure put off for years.

Opponents, however, say the land is too contaminated with toxic chemicals spread by the now closed Exide battery-recycling plant in Vernon and past industrial uses. It is “irresponsible” to move forward without first creating a cleanup plan, says Mark Lopez, director of Commerce-based East Yard Communities for Environmental Justice.

The property was once home to a heavy machinery business, according to Lopez. Toxic materials, percholorethylene (PCE) and tetrachloroethylene (TCE), that could affect movement and control of the body, can be found on the site, Lopez said.

A final Environmental Impact Report (EIR) for the Commerce Retail Center Project was released on March 3 of this year and is waiting approval. Lopez believes the review of potential environmental issues, including health hazards has been inadequate.

He says the Department of Toxic Substance Control (DTSC) hasn’t yet characterized the elevated levels of soil contamination, adding the organization does not “trust” DTSC to do an adequate oversight job given the agency’s failures in the Exide contamination issue.

DTSC however, citing its “great deal of experience and expertise overseeing the investigation and cleanup of these types of properties across the state,” told EGP in an email statement that the agency is using its “expertise to ensure the work at the Gatwick site in the City of Commerce is done properly so property is safe for its planned use.”

View of site for proposed retail development at Washington and Atlantic boulevards. (EGP photo by Jacqueline Garcia)

The agency said it has reviewed and evaluated the developer’s risk assessment and cleanup plans and “sent our comments back to the developer for revision,” DTSC spokesperson Sandy Nax told EGP.

“In addition, the developer has recently acquired a new land parcel within the same block from the City of Commerce. DTSC has required investigation of the subsurface soil in the new parcel and the Proponent will be conducting soil sampling soon.”

East Yards and others also say they are concerned the project could negatively impact the I-710 Corridor Project to improve an 18-mile stretch of the I-710 from Long Beach to the Pomona 60 Freeway in East Los Angeles. The goal of the 710 project is to “improve air quality/public health, improve traffic safety, modernize the freeway design” to accommodate projected growth in the area.

The project has been under review for years, and at one time contained a proposal to take upwards of 100 homes in the Ayers neighborhood to make room for the expansion. If built, the retail center would be located near the 710 Freeway where Lopez said they fought to locate the new northbound off-ramp to avoid the taking of the Ayers neighborhood.

“So part of our struggle was to redesign the project so it wouldn’t take those homes and what we did, instead of having the off-ramp [east of the freeway], it would come to the other side where they want to put the Walmart,” Lopez said, adding they know for a fact that a Walmart is slated to open on the site.

“So if they build a Walmart, who’s going to have better protections from the lawyers, Walmart or the homes?” asked Lopez.

Lauren Wonder, a spokesperson for Caltrans District 7, told EGP there is currently no project alignment for the I-710 project. Nothing has been decided, she said. “The time frame for the final environmental impact report is now early 2017.”

Until the final I-710 EIR is published, comments received and the document is finalized, any discussion of future impacts “will only be a speculation,” Commerce’s Publics Works Director Maryam Babaki told EGP.

Both Babaki and Alvarado say it could take 10 or more years to move the I-710 project, and the city can’t just wait until it does.

Alvarado said he has no problem if Walmart ultimately winds up being the anchor tenant, adding he wants a tenant that will attract more people and benefit other businesses in the area.

Commerce’s General Plan calls for service commercial, general commercial and light industrial uses in the area. A big box store, like Walmart or Target, could generate $600,000 to $800,000 in added revenue per year for the city, according to Maryam Babaki, Commerce’s director of Public Works.

Mayor Ivan Altamirano told EGP he hasn’t decided whether to support the project, saying, “this is not a decision to be taken lightly.”

“I want to know all the players and pieces of this project and quite frankly I don’t believe all of that information has been disclosed,” he said.

“Our community is actually divided on this project. It seems like everyone in the city is already calling this project Walmart except for the developers.”

Altamirano said several factors must be taken in consideration, such as the impact on traffic and the number of good paying jobs it will bring for residents. We also have to look at crime in the area, and whether there are enough sheriff deputies to patrol the area, he told EGP.

Alvarado told EGP the city is already working on traffic improvements in the area, including the widening of Washington Boulevard. The opponents are “a group of people that want to hold back progress of the community,” he said. He and others believe the real issue is opposition to Walmart.

East Yards calls Walmart’s employment track record “problematic,” claiming company workers earn low-wages and work too few hours to qualify for benefits, and has closed up stores with little notice to employees.

Alvarado doesn’t buy the argument, and points out that that other businesses in the area, including at the Citadel, only pay their employees the minimum wage and “nobody complains.”

A date has yet to be set for the project to go before the full city council for review, but it is likely to be within the next few weeks, said Alvarado.

Altamirano said that he will not be rushed into making a decision that will have such a significant impact on the community.

“Once all the information is provided then we can move forward on what is best for the residents of Commerce,” the mayor said.

“Those that don’t want a Walmart are rightfully concerned about the negative effects Walmart has historically had on communities. Those that are in favor of the project I believe really just want a shopping option, Walmart or not.”

“Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future. It’s important to remember that we’ll open well more than 300 stores around the world next year. So we are committed to growing, but we are being disciplined about it.”

About 16,000 employees are expected to be impacted by the closures.

There are nearly 11,600 Walmart stores around the world, ranging from smaller Walmart Express stores to Neighborhood Markets, Walmarts, Walmart Supercenters and Sam’s Club warehouse outlets.

Stores that will be closed in Southern California will be Walmarts at 151 E. Fifth St. in Long Beach, effective Jan. 28, and at 4101 Crenshaw Blvd. in Baldwin Hills, effective Sunday.

Those five stores will close Jan. 28, with the exception of the Chinatown store, which will close Sunday.

Delia Garcia of Walmart said about 1,100 employees will be affected by the closure of the seven Southern California stores.

“For all associates, the goal is to support our associates throughout the transition and provide opportunities to transfer to nearby stores,” Garcia told City News Service.

She noted that most of the stores being closed are located within six miles of four other Walmart locations.

She also said that while the stores will be closing by Jan. 28, most employees will likely continue working until Feb. 10 while stores are dismantled and merchandise is removed.

Employees who have not been placed in new jobs by Feb. 10 will receive 60 days pay. If after that 60 days they still have not been placed in new jobs, they will receive a severance package equal to one week’s pay for every year they have been with the company, Garcia said.

Garcia also said seven new Walmart stores are expected to open in California over the next year, and two existing stores will be expanded – moves that are expected to create about 1,000 jobs.

The Pico Rivera Walmart will be temporarily closed due to ongoing plumbing problems that will require extensive repairs, the company announced today.

The store at 8500 Washington Blvd. closed at 2 p.m., said Sgt. Raymond Cardenas of the Pico Rivera Police Department.

Walmart intends to “reopen the store as soon as all of the plumbing issues are resolved,” according to a company statement.

“Deciding to close a store is not a decision we make lightly, but after careful consideration, we felt it was necessary to make these repairs so we can better serve our customers and the community in the long run,” the statement said.